SOURCE: Knobias, Inc.

October 16, 2006 10:30 ET

If > Then > ELSE. Upside With Contingencies

RIDGELAND, MS -- (MARKET WIRE) -- October 16, 2006 -- Industrial production control and sensor manufacturer Electro-Sensors Inc. (NASDAQ: ELSE) has been chosen for this week's "SPOT Feature" in the Knobias Small-Cap ClipReport. Each week, Knobias scours the small-cap universe to find overlooked companies with sound fundamentals and one or more growth catalyst on the horizon. The weekly "SPOT" feature may be accessed via our daily ClipReport newsletter (free to all subscribers). To receive the Small-Cap ClipReport daily, please visit:

If > Then > ELSE. Upside With Contingencies

Electro-Sensors Inc. (NASDAQ: ELSE) is engaged in two businesses. The 1st, the Controls Division, manufactures and markets a complete line of speed monitoring and motor control systems for industrial machinery with sales to the grain, feed, ethanol and biofuels, power generation, and mining industries. The 2nd, AutoData Systems (ADS), designs and markets a desktop software system that reads hand printed characters, checkmarks and bar code information from scanned or faxed forms. The company's subsidiary, ESI Investment Company, invests in and owns marketable securities.

The BULLS Say...

Safety Net for Momentum Possibilities? There are so many "moving parts" to this tiny manufacturer that it can't all be properly explained on one page, but it might just boil down to auspicious new growth and measurable risk. After 6 years, ELSE has broken the $5M revenue barrier again and has reported double-digit sales growth and operating profits over the last 3 quarters. Have commodity prices and new ethanol/biofuel endeavors given ELSE new legs? A regular dividend, a growing $6.8M stake in Rudolph Tech (RTEC), no debt and the potential for future investment gains and special dividends help moderate the fear in betting that the 3-quarter growth spurt is a new trend and not just a "blip" on the financials.

The BEARS Say...

Core Biz Follow-Thru, or ELSE. Long-time holders probably understand the story best, but it seems that ELSE needs to follow through on its core business momentum. Q3/4 needs to prove that ELSE has more going for it than just a good bet on August Tech (now RTEC). Oh, and watch out for "ethanol-play" stupidity.

About the Small-Cap ClipReport

Most small-cap newsletters just tout stocks. Instead, the ClipReport provides a comprehensive, journalistic view of each day's small-cap action. This nightly, 10-page PDF email consolidates actionable information and analysis covering the world of stocks below a $500 million marketcap threshold. Starting with "Page One," Knobias breaks down one of the week's most interesting topics in the small-cap universe. The remaining 9 pages provide users with each day's top stories, news movers, strong closers, after-hours events, earnings, corporate actions, PIPE deals, Reg SHO stocks and symbol/name changes. The ClipReport is a daily "must-read" for every small- and micro-cap investor.

About the Weekly SPOT

Each week, Knobias scours the small-cap universe to find overlooked companies with sound fundamentals and one or more growth catalyst on the horizon. This search typically features a small-cap stock exhibiting strong growth while undervalued relative to public peers. SPOT selections tend to be "under-priced" due to lack of coverage or a failure for the marketplace to fully understand "the story." SPOT companies must meet the same basic criteria as our Small-Cap ClipReport, i.e. under $500M marketcap...banks, ETFs, funds and utilities are excluded. Furthermore, SPOT selections must be fundamentally sound with growth, profitability (or near) and clear prospects for price appreciation. Knobias is never compensated for SPOT selections, and NO position will be held in SPOT stocks by Knobias, its management or staff while the stock is being highlighted.

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About Knobias, Inc.

Knobias, Inc. (OTCBB: KNBS), pronounced "no-b-s," provides a wide range of financial information solutions for all sides of the U.S. stock market. Knobias combines proprietary content & technology into efficient platforms for the consolidation, distribution & targeted presentation of investment decision information for customers & affiliates. Knobias platforms provide news, filings, fundamentals, transaction databases, calendars, research, tools & analysis for all U.S. equities with a special emphasis on small-caps. Knobias customers include retail investors, day-traders, buy-side & sell-side professionals, public issuers, financial websites & financial content providers. For more information about Knobias, Inc. products, please visit


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Contact Information

  • Company Contacts:

    Key Ramsey
    Knobias, Inc.

    Marla Breland
    Knobias, Inc.
    601-978-3399 ext 155